UNIVERSITARI FACULTY OF EALAND MANAGEMENT WEES ACCOUNTING DEPARTMENT THESE TERMOSEMISTERIAMS ATTEMPT ACEST 1 HOUR Bean Chemical in ding buying mel's capital con el pashe bought and production by the you and development works peur below Sales price (Elite) Sales Volume (litres) Variable costs (line) Fixed cost(0000) Yar Yar Yar Yeart Yours 100 120 100 00 1000 1.00 LO 0 50 50 40 30 40 30 30 30 30 30 120 If the equipment is brought we of existing products will be used this will tumak inak contribution of 15,000 nyeux verts life. The accountant has informed you that the foredo sindade directions 20.00 equipment. They also include an action of 10,000 for adoptedy that it's now equipment were bought addition over hendi, edding deparation, iting the chemical would be 8,000 a year. Production would uit ditional working capital Required a) Deduce the relevant amenal cashewsociated with buying the equipment 1) Deduce the payback period c) Calculate the net persent value using a dicant rate of 8%. d) Ignore taxation (Hint: You should deal with investment in working oil by creating dres a cash out the project and intiwar Me end Page 1 of 1 UNIVERSITARI FACULTY OF EALAND MANAGEMENT WEES ACCOUNTING DEPARTMENT THESE TERMOSEMISTERIAMS ATTEMPT ACEST 1 HOUR Bean Chemical in ding buying mel's capital con el pashe bought and production by the you and development works peur below Sales price (Elite) Sales Volume (litres) Variable costs (line) Fixed cost(0000) Yar Yar Yar Yeart Yours 100 120 100 00 1000 1.00 LO 0 50 50 40 30 40 30 30 30 30 30 120 If the equipment is brought we of existing products will be used this will tumak inak contribution of 15,000 nyeux verts life. The accountant has informed you that the foredo sindade directions 20.00 equipment. They also include an action of 10,000 for adoptedy that it's now equipment were bought addition over hendi, edding deparation, iting the chemical would be 8,000 a year. Production would uit ditional working capital Required a) Deduce the relevant amenal cashewsociated with buying the equipment 1) Deduce the payback period c) Calculate the net persent value using a dicant rate of 8%. d) Ignore taxation (Hint: You should deal with investment in working oil by creating dres a cash out the project and intiwar Me end Page 1 of 1